Verizon Wireless Ditches Plan for $2 'Convenience' Fee

Amidst backlash from consumers and the possibility of a Federal Communications Commission investigation, Verizon Wireless said Friday afternoon that it will not charge consumers a $2 fee for one-time bill payments online and by phone.

Amidst backlash from consumers and the possibility of a Federal Communications Commission investigation, Verizon Wireless said Friday afternoon that it will not charge consumers a $2 fee for one-time bill payments online and by phone.

"At Verizon, we take great care to listen to our customers," Dan Mead, president and chief executive officer of Verizon Wireless, said in a statement. "Based on their input, we believe the best path forward is to encourage customers to take advantage of the best and most efficient options, eliminating the need to institute the fee at this time."

Verizon said yesterday that it would impose a $2 "convenience fee" for one-time credit and debit card payments made online and on the phone. The fees, which were scheduled to go into effect on Jan. 15, were intended to "improve the efficiency of those transactions."

The fee would not have applied to those who signed up for Auto Pay, which makes automatic monthly payments via a major credit or debit card on the same day every month, or when your account reaches a specific dollar amount. With Verizon, the minimum payment is $15 and the max is $250.

Other ways to avoid the $2 fee included: using an electronic check, which will pull the funds directly from your bank account; paying online via your bank's bill pay site; going to a Verizon Store; using a Verizon gift, rebate, or friends and family referral card; or mailing a paper check.

Customers were not pleased, however, with many hitting back in the comments section of PCMag's story.

"OMG !!!! Unbelievable! I'm already paying over $200.00 per month (have been for years) and they want to squeeze even more money out of me?! This is total robbery!" wrote one user.

"This is silly. Most businesses want you to pay online because it's less costly than a person opening checks. Besides, who in their right mind would allow a cell phone company to automatically deduct your bill when half the time the bill is wrong?" wrote another.

Earlier today, before Verizon dropped plans for the fee, the FCC said it would investigate the plan.

"On behalf of American consumers, we're concerned about Verizon's actions and are looking into the matter," an FCC spokesman said.

According to AT&T's Web site, the provider does not charge users for one-time online payments, but users who pay by phone or go to a "payment location" might be charged an unspecified convenience fee.

Sprint does not list any payment restrictions, but members with Account Spending Limits (ASL)or a maximum amount your account can accrue based on credit history, payment history, or fraud-related incidentsare charged a $4.99 per month fee unless they enroll in automatic bill pay.

About the Author

Before joining PCMag.com, Chloe covered financial IT for Incisive Media in NYC and technology policy for The National Journal's Technology Daily in Washington, DC. She has held internships at NBC's Meet the Press, washingtonpost.com, the Tate Gallery press office in London, Roll Call, and Congressional Quarterly. She graduated with a bachelor's deg... See Full Bio

Get Our Best Stories!

This newsletter may contain advertising, deals, or affiliate links. Subscribing to a newsletter indicates your consent to our Terms of Use and Privacy Policy. You may unsubscribe from the newsletters at any time.